New York AG urges top Citigroup execs to forgo bonuses

ChadBray

NEW YORK (MarketWatch) -- New York Attorney General Andrew Cuomo on Monday urged Citigroup Inc.'s
C, -0.93%
top executives to forego their bonuses this year, saying the banking giant's plan to slash some 50,000 jobs is a "sad and disturbing" development.

In a statement Monday, Cuomo said Citigroup's stated intention to wait until next year to make a decision on bonuses is "a mistake."

"After four consecutive quarterly losses, it seems only fair that top executives should shoulder their fair share of these difficult economic times," Cuomo said. "It would send exactly the wrong message for Citigroup's top brass to collect bonuses while investors, taxpayers, and now Citigroup's own employees suffer."

At a "town hall" meeting Monday, Vikram Pandit, Citi's chief executive, said the banking giant plants to reduce its total work force to about 300,000 employees from 352,000 in the third quarter.

About half of the planned reductions would come from previously announced divestitures and other cost-cutting measures. The rest of the cuts would be layoffs.

Cuomo said the banking giant should, at a minimum, follow the example of Goldman Sachs Group (GS). Seven top executives at the firm, including Chief Executive Lloyd Blankfein, have decided to forgo their 2008 bonuses.

Last month, Cuomo asked nine banks receiving federal funds as part of the government's financial rescue plan, including Citigroup, to provide his office with information about expected bonuses and compensation to be paid to their top executives.

"Citigroup is, of course, not the only company in this situation," Cuomo said. "Other companies like AIG, who have received billions in rescue financing from taxpayers, also need to take a hard look in the mirror when determining the right thing to do on executive bonuses during these very difficult economic times."

NEW YORK (MarketWatch) -- New York Attorney General Andrew Cuomo on Monday urged Citigroup Inc.'s C top executives to forego their bonuses this year, saying the banking giant's plan to slash some 50,000 jobs is a "sad and disturbing" development.

In a statement Monday, Cuomo said Citigroup's stated intention to wait until next year to make a decision on bonuses is "a mistake."

"After four consecutive quarterly losses, it seems only fair that top executives should shoulder their fair share of these difficult economic times," Cuomo said. "It would send exactly the wrong message for Citigroup's top brass to collect bonuses while investors, taxpayers, and now Citigroup's own employees suffer."

At a "town hall" meeting Monday, Vikram Pandit, Citi's chief executive, said the banking giant plans to reduce its total work force to about 300,000 employees from 352,000 in the third quarter.

About half of the planned reductions would come from previously announced divestitures and other cost-cutting measures. The rest of the cuts would be layoffs.

Cuomo said the banking giant should, at a minimum, follow the example of Goldman Sachs Group Inc. (GS). Seven top executives at the firm, including Chief Executive Lloyd Blankfein, have decided to forgo their 2008 bonuses.

Last month, Cuomo asked nine banks receiving federal funds as part of the government's financial rescue plan, including Citigroup, to provide his office with information about expected bonuses and compensation to be paid to their top executives.

"Citigroup is, of course, not the only company in this situation," Cuomo said. "Other companies like AIG, who have received billions in rescue financing from taxpayers, also need to take a hard look in the mirror when determining the right thing to do on executive bonuses during these very difficult economic times."

Last month, Deutsche Bank AG DB announced its executives, including its chairman and business heads, weren't receiving bonuses.

A Morgan Stanley spokesman said Monday the investment bank is expected to make decisions regarding bonuses in the next two weeks.

Intraday Data provided by SIX Financial Information and subject to terms of use.
Historical and current end-of-day data provided by SIX Financial Information. Intraday data
delayed per exchange requirements. S&P/Dow Jones Indices (SM) from Dow Jones & Company, Inc.
All quotes are in local exchange time. Real time last sale data provided by NASDAQ. More
information on NASDAQ traded symbols and their current financial status. Intraday
data delayed 15 minutes for Nasdaq, and 20 minutes for other exchanges. S&P/Dow Jones Indices (SM)
from Dow Jones & Company, Inc. SEHK intraday data is provided by SIX Financial Information and is
at least 60-minutes delayed. All quotes are in local exchange time.